As per a report of Moneycontrol, in a major enforcement move, the Securities and Exchange Board of India (SEBI) has conducted a two-day search at the Karjat Academy of trading influencer Avadhut Sathe.
This action is part of a broader crackdown on financial influencers allegedly operating without regulatory approval and misleading retail investors.
As per a report of Moneycontrol on August 20, 2025, SEBI initiated a carefully coordinated raid at Avadhut Sathe's training academy located in Karjat. The operation involved surveillance, pre-approved legal clearances and tracking of movements before execution.
The regulator's team, led by a deputy general manager, carried out search and seizure actions that lasted until August 21, 2025. Digital devices, materials, and trading data were confiscated and are currently undergoing forensic investigation.
Complaints had been submitted alleging that certain trading academies might be working with market operators to promote penny stocks through classroom teachings.
By integrating such stocks into live chart analysis and trading strategies, these sessions potentially influence stock price movement favourably for operators. The premise under investigation is whether such engagement was done without appropriate registration or disclosures under SEBI guidelines.
SEBI whole-time member Kamlesh Chandra Varshney, at a public forum, remarked without naming Sathe that misleading the youth in the guise of education will attract strong regulatory responses.
Emphasis was placed on the importance of fair practices and avoiding market guidance unless authorised by Sebi. He also highlighted that using classroom platforms for issuing stock calls or showing live trades without accreditation breaches regulatory protocols.
Read More: SEBI Plans to Increase Tenure of Equity Derivatives to Ensure Market Stability!
Avadhut Sathe commands a subscriber base of 9,36,000 on YouTube, indicating his content's widespread reach. His Karjat Academy is popular among retail investors seeking trading insights and education.
However, SEBI’s action suggests that online visibility does not substitute for legal compliance, especially when financial advice influences market behaviour.
The raid on Avadhut Sathe's Karjat Academy marks a significant step in SEBI’s efforts to regulate the growing finfluencer ecosystem. By targeting unauthorised methods of stock promotion and educating without registration, the financial watchdog reinforces the need for compliance and investor protection.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Aug 22, 2025, 11:55 AM IST
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